Banks Rediscover Their Branches
Sydney Morning Herald
Saturday August 26, 2006
GOING to a bank branch, while tedious for some, remains popular with others and is leading banks to think twice about closing suburban offices.
In recent year the major banks have been cutting costs dramatically, shutting many smaller branches and consolidating operations. Increased use of the internet and telephone banking made this possible. Many banks also opted to sell branch buildings and move out, allowing the new owners to convert them into cafes or shops.But that led to an outcry from customers, mainly the elderly, who don't use the internet and still prefer to go into a branch for human contact.Space has also been rationalised in Sydney's CBD.Westpac has moved the majority of its staff into one site at Kent Street, while Commonwealth Bank is moving people from the CBD to new premises at Homebush.In both cases they have also closed branches in the process.Westpac has relinquished its lease at 77 King Street, on the corner of George Street. The space is to be redeveloped for retail.It is understood that in the next 18 months, Commonwealth Bank could look to close its branch on the corner of Market and George Streets. The space is expected to be redeveloped for retail.But it appears that after nearly 15 years of rationalisation and the withdrawal of the major banks from many retail strips, ANZ is rebuilding its branch network.The bank has taken over a property at 1002 Victoria Road, West Ryde, which was previously occupied by Westpac.ANZ secured a 10-year lease with three plus three year options and is spending $1.2 million to refurbish and refit the building.It plans to open banking operations once the lease takes effect on September 1.But ANZ will not buy the property, which is now on the market.Paul Hunter at Laing & Simmons Commercial is the selling agent. He said the branch opening was in line with ANZ's commitment to expanding its branch network in metropolitan, regional and rural Australia.Three more new branches were to open this month: at Chifley Square and Sydney Airport, and in Cooktown in far north Queensland."Over the last few years, clients disgruntled with the lack of accessibility to branches have sent a strong message to the major banks by taking their business to other financial institutions which have retained a focus on face-to-face service," Mr Hunter said.ANZ's move is supported by a fact sheet produced by the Australian Bankers Association in 2005 on bank accessibility. It said that even though banks were effectively always open via the internet, Eftpos and auto tellers, demand had forced them to rethink face-to-face banking."The fact sheet featured a points of presence survey conducted by the Australian Prudential Regulation Authority in 2004 which confirmed the view that after a period of rationalisation in the 1990s, the number of bank branches had begun to increase again, marking a reversal of trend."
© 2006 Sydney Morning Herald